MOM reviewing worker support measures as retrenchments hit highest level since 2020

Acting Minister for Manpower Jasmin Lau said the Ministry of Manpower (MOM) is reviewing worker support measures as retrenchments hit their highest level since 2020, during the COVID-19 pandemic.

MOM's data showed that the number of retrenchments rose to 4,620 in the second quarter of 2026, which is about two retrenched workers per 1,000 employees, up from 3,830 retrenchments in the first quarter.

Based on MOM's Labour Market Report released on Sept 21, the rise was driven by business reorganisation and restructuring in sectors such as manufacturing, information & communications and financial services.

'Not clear' if AI is driving retrenchments

During parliament on Tuesday (Oct 6), Lau said that it is unclear if retrenchments have been driven up by AI adoption.

She said that the impact of AI adoption is difficult to isolate from broader business transformations and reorganisation, adding that the ministry’s surveys found that only a small minority of firms adopting AI have reduced headcounts, with more creating new roles or redesigning jobs.

“We will continue to refine our surveys and market-sensing mechanisms to better understand the impact of AI on jobs,” said Lau.

Payment of retrenchment benefits

When asked about whether the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment (TAMEM) has been effective in getting employers to pay retrenchment benefits, Lau said that 88 per cent of employers complied with the advisory and provided retrenchment benefits.

She added that about one in five employers that did not pay retrenchment benefits cited financial difficulties, while the remainder gave other reasons, including providing other forms of support to affected workers.

Yeo Wan Ling also highlighted concerns about workers from non-unionised companies that have the financial means to pay retrenchment benefits but are not legally required to do so.

As part of the ongoing review of the Employment Act, the tripartite partners are studying ways to strengthen support for retrenched workers, including improving compliance with TAMEM.

The tripartite partners comprise the Ministry of Manpower, the National Trades Union Congress and the Singapore National Employers Federation.

"One option we are considering is to take administrative action against employers who do not pay retrenchment benefits in egregious cases where an employer has the financial ability to pay but refuses to, despite repeated engagements and warnings," said Lai.

She added that the Government must balance stronger worker protections with the needs of employers facing genuine financial difficulties.

Reviewing Employment Act

"The labour market remains resilient, but there are signs of softening," said Lau.

MOM is therefore "comprehensively reviewing" its measures to determine how support for workers can be strengthened.

Her ministry is also looking at how to support workers who face longer transitions back into employment, including older workers and those in sectors undergoing significant restructuring.

Re-entry outcomes have softened, she added, with the proportion of retrenched residents returning to employment within six months declining from 60.7% in the first quarter to 54.9% in the second quarter of this year.

However, Lau stressed that there is no single retrenchment experience. Seven in 10 retrenched PMET residents found jobs within 12 months, while eight in 10 found jobs within 24 months.

Of those who re-entered the workforce, six in 10 earned more than before their retrenchment. Among those who earned less, the median wage reduction was about 25 per cent of their pre-retrenchment wages.

MOM will also investigate and take appropriate action when there are signs of unfair displacement, including looking into possible disguised retrenchments and engaging the employers involved, said the acting minister.

Lau said that the Employment Act is currently under review to address these issues, and MOM will provide an update when the reviews are completed.

laili.abdeen@asiaone.com

人力部代理部长刘嘉敏表示，由于新冠疫情期间裁员人数达到2020年以来的最高水平，人力部正在审查工人援助措施。

人力部的数据显示，2026 年第二季度裁员人数上升至 4,620 人，相当于每 1,000 名员工中约有 2 名工人被裁，高于第一季度的 3,830 人。

根据人力部9月21日发布的劳动力市场报告，就业增长是由制造业、信息通信业和金融服务业等行业的企业重组和结构调整所推动的。

人工智能是否导致裁员尚不明确

刘在周二（10月6日）的国会会议上表示，目前尚不清楚裁员是否是由人工智能的应用推动的。

她表示，人工智能的应用影响很难与更广泛的业务转型和重组区分开来，并补充说，该部的调查发现，只有少数采用人工智能的公司减少了员工人数，更多的公司则创造了新的职位或重新设计了工作。

刘先生表示：“我们将继续改进我们的调查和市场感知机制，以更好地了解人工智能对就业的影响。”

支付裁员补偿金

当被问及《三方管理过剩人力和负责任裁员咨询》（TAMEM）是否有效促使雇主支付裁员补偿金时，刘表示，88% 的雇主遵守了该咨询，并提供了裁员补偿金。

她补充说，约有五分之一的雇主没有支付裁员补偿金，理由是财务困难，而其余雇主则给出了其他理由，包括向受影响的工人提供其他形式的支持。

杨婉玲还强调了对非工会公司员工的担忧，这些员工有经济能力支付裁员补偿金，但法律上并没有义务这样做。

作为对《就业法》持续审查的一部分，三方合作伙伴正在研究如何加强对被裁工人的支持，包括提高对 TAMEM 的遵守程度。

三方合作伙伴包括人力部、全国职工总会和新加坡全国雇主联合会。

赖先生说：“我们正在考虑的一个方案是，对那些有经济能力支付裁员补偿金却拒绝支付的雇主采取行政措施，尤其是在我们多次沟通和警告之后。”

她补充说，政府必须在加强对劳动者的保护与面临真正财务困难的雇主的需求之间取得平衡。

审查就业法

刘先生表示：“劳动力市场依然具有韧性，但也有疲软的迹象。”

因此，人力部正在“全面审查”其各项措施，以确定如何加强对工人的支持。

她的部门也在研究如何支持那些面临更长时间重返工作岗位的工人，包括老年工人和那些在经历重大结构调整的行业工作的工人。

她补充说，重新就业的结果有所缓和，被裁居民在六个月内重返工作岗位的比例从今年第一季度的 60.7% 下降到第二季度的 54.9%。

然而，刘强调，裁员经历并非千篇一律。十分之七被裁的专业人士、经理、执行人员和技术人员（PMET）居民在12个月内找到了工作，十分之八在24个月内找到了工作。

在重新进入职场的人中，十分之六的人收入比被裁员前更高。而在收入下降的人中，工资中位数降幅约为被裁员前工资的25%。

代理部长表示，人力部还将对不公平裁员的迹象进行调查并采取适当行动，包括调查可能的隐性裁员，并与相关雇主进行沟通。

刘先生表示，《雇佣法令》目前正在进行审查以解决这些问题，人力部将在审查完成后提供最新消息。

laili.abdeen@asiaone.com